Tax Issues

Same-Sex Couples May File Joint Tax Returns

by Brian Vertz on August 30, 2013

In a press release yesterday, the U.S. Treasury Department announced its ruling that same-sex couples may file joint income tax returns, regardless of whether they reside in states that recognize their marriage or not. In fact, the Treasury Department invites same-sex couples to amend their separate returns to file joint returns for the past three […]

Flipping Loss Not Deductible from Income in Child Support Action

May 31, 2013 Child Support

The Superior Court in K.J.P. v. R.A.P., 68 A.3d 974 (Pa.Super. 2013) examined losses emanating from a parent’s investment activity apart from his primary employment. In addition to his regular employment as a marketing and product development consultant, Father was engaged in the purchase, renovation and sale of residential properties, owning as many as 20 […]

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How the Fiscal Cliff Tax Deal Affects Child Support

January 4, 2013 Child Support

Over New Year’s Weekend, our Congress passed legislation to avert the “fiscal cliff,” which would have resulted in dramatic income tax increases. The new law has ushered in tax increases, to be sure, but those tax hikes are not as dramatic as what might have occurred if Congress had not belatedly acted. The Fiscal Cliff […]

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IRS Disqualifies Tax Deduction for Alimony Paid Until Child Finishes College

December 2, 2012 Alimony

In Doolittle v. Commissioner, T.C. Summary Opinion 2012-103 (2012), a NON-precedential opinion of the U.S. Tax Court, the taxpayer settled his divorce by entering into a marital settlement agreement, in which he agreed to pay $900 per month alimony until December 31, 2010. The alimony was intended to “help with college costs,” according to the 2003 […]

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Divorce is No Excuse for Not Filing Tax Returns

November 4, 2012 Court Decisions

Perhaps it comes as no surprise that the IRS generally will not consider divorce as a good excuse for being late in filing income tax returns. In Cayabyab v. Commissioner, T.C. Memo. 2012-89 (2012), the taxpayer did not file his 2006 federal income tax return by the deadline (April 15, 2007). The IRS sent him a […]

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Tax Deadline: Should You File Jointly with an Estranged Spouse?

April 10, 2012 Tax Issues

When separated spouses file their income tax returns, they generally have a choice of filing jointly or separately. If they file jointly, they may have to decide how to allocate the tax liability or refund. If they file separately, they may have to decide how to allocate itemized deductions, the children’s dependency exemptions, and credits. […]

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IRS Eliminates Two Year Limit on Innocent Spouse Equitable Relief

August 5, 2011 Tax Issues

In July 2011, the IRS changed its policy that once imposed a two year limit on innocent spouses seeking certain forms of relief from tax penalties and interest caused by their spouse’s misreporting on joint tax returns. A recent article from the Washington Post explained: Under the innocent spouse umbrella are three types of relief […]

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Does Payroll Tax Holiday Create Right to Modify Child Support?

January 3, 2011 Child Support

Before it adjourned in December, the previous Congress passed a sweeping income tax reform bill designed to extend the Bush tax cuts for a couple more years. One important feature of that law, which goes into effect in January 2011, is a “payroll tax holiday.” Workers who earn wages and salaries must pay 6.2% for […]

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What’s the Hullabaloo about Balicki?

December 12, 2010 Alimony

In Balicki v. Balicki, 2010 Pa.Super.134 (2010), the Superior Court affirmed the trial court’s decision to discount the value of an insurance business, based on the hypothetical income taxes that would be incurred by its owner upon sale of the business. The trial court’s decision was itself a reversal of the master’s report, in which […]

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Alimony Tax Gross-Up Approved

August 9, 2010 Alimony

In Balicki v. Balicki, 2010 PA Super. 134 (July 30, 2010), the Superior Court considered the husband’s argument that the alimony order provided more income to his ex-wife than she could spend (as shown by her budgetary expenses). The trial court in its opinion justified the alimony award by noting that the wife would pay […]

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